Chemical Industry Job Outlook

Employment is projected to decline rapidly, and applicants for jobs are expected
to face keen competition.

Although output is expected to grow, wage and salary
employment in the chemical manufacturing industry, excluding pharmaceuticals, is
projected to decline by 13 percent over the 2008-18 period, compared to 11
percent growth projected for all industries combined. The expected decline in
employment can be attributed to trends affecting the U.S. and global economies.
A number of factors will influence chemical industry employment, including
technological advances that have enabled plant automation and more efficient
chemical processes that have affected the production process, the state of the
national and world economy, company mergers and consolidation, increased foreign
competition, the shifting of production activities to foreign countries, and
environmental health and safety concerns and legislation. Another trend in the
chemical industry is the rising demand for specialty chemicals. Chemical
companies are finding that, in order to remain competitive, they must
differentiate their products and produce specialty chemicals, such as advanced
polymers and plastics designed for customer-specific uses—for example, a durable
body panel on an automobile.

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Improvements in production technology have reduced the need for workers in
production; installation, maintenance, and repair; which account for large
proportions of jobs in the chemical industry. Sophisticated machines with
computerized controls have replaced some workers in standard production. With
automation manufacturers can increase accuracy and decrease time and labor
costs, thus contributing to increased production efficiency. Although production
facilities will be easier to run with the increased use of computerized
controls, the new production methods will require workers with a better
understanding of the systems.

It is important for firms to improve their bottom line. Pressure to reduce
costs and streamline production will result in mergers and consolidations of
companies both within the United States and abroad. Mergers and consolidations
are allowing chemical companies to increase profits by eliminating duplicate
tasks and departments and shifting operations to locations in which costs are
lowest. U.S. companies are expected to move some production activities to
developing countries—in East Asia and Latin America, for example—to take
advantage of rapidly expanding markets.

The volatility of inputs like crude oil and natural gas prices impact the
chemical manufacturing industry. Likewise, prices of chemical feedstocks—like
ethane or propane, which are used to produce petrochemicals, plastics,
fertilizers, and other products— can be unstable. In response, prices for
chemical products must fluctuate and so does demand for chemical products. If
prices of such inputs are continually high, demand will be low for chemical
products and manufacturer will need to employ fewer workers; the opposite would
occur if inputs are continually low priced.

Increasing interest in going "green" throughout the U.S. may affect the
chemical manufacturing industry. For example, there are efforts to reduce the
amount of emissions the U.S. produces. As manufacturers have limits imposed on
their emissions, the cost of producing chemical products will rise, likely
reducing demand. Also, many localities are considering restrictions on the use
of plastic shopping bags, a product of the chemical manufacturing industry.

The factors influencing employment in the chemical manufacturing industry
will affect different segments of the industry to varying degrees. Only one
segment—paint, coating, and adhesive products segment—is projected to grow. The
remaining segments are projected to lose jobs.

Individuals seeking employment in the chemical manufacturing industry are
expected to face keen competition, particularly those seeking to enter the
industry for the first time. For production jobs, opportunities will be best for
those with experience and continuing education. For professional and managerial
jobs, applicants with experience and an advanced degree should have the best
prospects. In addition, some job opportunities will arise from the need to
replace workers who transfer to other occupations or who retire or leave the
labor force for other reasons.

Source: Bureau of Labor
Statistics, U.S. Department of Labor, Career Guide
to Industries, 2010-11 Edition